Why study Economics? Economics is an important and useful subject. It has acquired greater importance in recent years. People now look to Economics to solve the economic problems. The study of Economics has several advantages. I want to emphasize that the main importance of economics is aiding our society make a decision on the optimal allocation and utilization of our scarce resources. However, the Importance Of Economics is described shortly in below section.
What Is The Importance Of Economics
1. Intellectual value : The study of Economics enables a person to develop reasoning power, clear thinking and correct judgement. It also develops the faculty of observation. These qualities are necessary to discover truth.
2. Human behavior : With the help of Economics we can know human behavior in the respect of earning and spending of money.
3. Economic system : It helps to understand the working of the economic system and how it solves the economic problems. It is also useful to know different types of economic systems such as socialism, capitalism and mixed economy.
4. Planning : The study of economics is necessary to understand the technique of Economic planning and the problems involved.
5. Economic Problems : The study of Economics provides tools for analyzing economic problems of the world. A part from the theoretical advantages it has several practical advantages.
6. Businessman : Knowledge of economics is necessary for a business man to run his business most efficiently. Just as a knowledge of medicine is necessary for a doctor, knowledge of Economics is necessary for a businessman to know the changes in business.
7. Statesmen: Most of the problems that a country faces today are economic problems like poverty, unemployment in nation, etc. The statesmen especially finance minister requires a thorough knowledge of Economics to understand the nature of these problems and solve them.
8. Consumers : Knowledge of Economics helps the consumers in securing maximum satisfaction out limited income. It helps us in making the right choice of wants.
9. Laborers : Laborers and trade union leaders should have knowledge of Economics to understand the problems of labor solve them. To solve industrial disputes and wage problems, labor leaders require knowledge of Economics. They should know under what circumstances trade unions can secure higher wages.
10. Citizens : It helps us to become useful and intelligent citizens. It enables us to understand various problems of agriculture. industries,trade, finance, transport and labor.
11. International economic problems : It helps us to understand international economic problems such as foreign trade, inflation, unemployment etc.
This the study of Economics has both theoretical and practical advantage. Human life is linked economic problems. Therefore, knowledge is necessary for everyone. Malthus remarks that ignorance of Economics is not merely a deviation of good but produces great positive evil . So importance of studying economics cannot be undervalued.